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Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.

	Current Year			Previous Year
Balance Sheet at December 31
Cash	$	6,560		$	4,520
Accounts Receivable		980			1,910
Equipment		6,380			5,800
Accumulated DepreciationEquipment		(1,660	)		(1,330	)
Total Assets	$	12,260		$	10,900
Accounts Payable	$	620		$	1,200
Salaries and Wages Payable		420			750
Note Payable (long-term)		1,600			500
Common Stock		5,800			5,800
Retained Earnings		3,820			2,650
Total Liabilities and Stockholders Equity	$	12,260		$	10,900
Income Statement
Service Revenue	$	39,100
Salaries and Wages Expense		36,600
Depreciation Expense		330
Income Tax Expense		1,000
Net Income	$	1,170

Additional Data:

1. Bought new hockey equipment for cash, $580.
2. Borrowed $1,100 cash from the bank during the year.
3. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.

Required:

1. Prepare the statement of cash flows for the current year ended December 31 using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

HEADS UP COMPANY Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Flows from Investing Activities: Cash Flows from Financing Activities

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